Skrill
Skrill Limited is a British financial services company specializing in digital wallets and online payment solutions, founded on 27 July 2001 as Moneybookers Ltd. and headquartered in London.[1] It enables users to make secure online payments, conduct international money transfers, and manage funds via email and password authentication, with a focus on low-cost transactions for consumers and businesses.[2][3] Originally developed to simplify e-commerce and cross-border payments, Skrill gained prominence in sectors like online gaming and cryptocurrency trading, offering features such as prepaid cards and multi-currency support.[4][5] In 2015, the company was acquired for €1.1 billion by Optimal Payments (now part of the Paysafe Group), which expanded its global reach under the Paysafe umbrella.[6][7] While regulated by the UK's Financial Conduct Authority and praised for security, Skrill has encountered user complaints regarding account restrictions, fund holds for compliance reasons, and customer service responsiveness, particularly in high-risk activities like gambling.[8][9] These issues stem from anti-money laundering requirements but have led to criticisms of opaque processes.[10]History
Founding and Early Operations (2001–2010)
Moneybookers, the original entity behind Skrill, was established on June 18, 2001, in London, United Kingdom, by entrepreneurs Daniel Klein and Benjamin Kullmann as an internet-focused payment service provider.[11][12] The company launched as a digital wallet enabling online payments, money transfers, and e-commerce transactions, emphasizing low-cost international remittances at a time when alternatives like PayPal dominated but faced regulatory and usage restrictions in certain sectors.[11][13] Moneybookers secured one of the first electronic money institution authorizations in Europe under the UK's implementation of the Electronic Money Directive, allowing it to issue e-money and distinguishing it from mere payment processors.[11][14] In its initial operations, Moneybookers prioritized multi-currency support and rapid fund transfers, targeting users in e-commerce, freelancing, and online gaming—areas where traditional banks and competitors imposed higher fees or prohibitions on high-risk activities.[11] The service processed peer-to-peer and merchant payments via email addresses, similar to emerging digital wallets, but carved a niche in unregulated markets by avoiding some of PayPal's compliance hurdles.[11] By 2007, following acquisition by Investcorp Technology Partners, the company had solidified its position with expanded infrastructure, though exact user metrics from this era remain sparse in public records; growth was driven by integrations with platforms like Skype and early social networks.[11] Throughout the late 2000s, Moneybookers experienced accelerated adoption amid rising online commerce, particularly in Europe and emerging markets, where it facilitated cross-border flows without the currency conversion markups common in banking.[11] In February 2010, it was ranked by the Sunday Times as the United Kingdom's fastest-growing private equity-backed firm, underscoring operational scaling and merchant onboarding amid the post-financial crisis shift to digital alternatives.[11] This recognition preceded the November 2010 announcement of its rebranding to Skrill, signaling a strategic pivot toward broader global branding while retaining core e-wallet functionalities developed over the decade.[15]Rebranding, Ownership Changes, and Expansion (2011–2015)
In March 2011, Moneybookers announced plans to rebrand as Skrill, aiming to position the service as a modern, verb-like shorthand for secure online payments with enhanced flexibility and reliability.[16] The rebranding process began transitioning the brand identity throughout 2011, with full implementation completed by 2013, reflecting the company's shift toward broader digital wallet capabilities beyond its original e-wallet focus.[17] Amid this rebranding, Skrill pursued expansion through strategic acquisitions, including the full purchase of payolution—a German startup launched just four months prior that specialized in instant bank transfers and invoice payments—for an undisclosed amount in September 2011.[18] This move bolstered Skrill's presence in European alternative payment methods, supporting faster domestic and cross-border transactions. By October 2012, the company reported a 29% year-over-year revenue increase and growth to 30 million global customer accounts, driven by expanded merchant partnerships and service integrations in e-commerce and gaming sectors.[19] Ownership shifted significantly in 2013 when CVC Capital Partners agreed to acquire a 75% controlling stake in Skrill Holdings for approximately €600 million in August, with the deal completing in February 2014; this private equity infusion enabled further investment in technology and market penetration.[20][21] Skrill had previously shelved a planned £160 million initial public offering in 2011 amid volatile market conditions.[22] In 2015, Optimal Payments plc announced its acquisition of Skrill for €1.1 billion in March, a reverse takeover that integrated Skrill's operations with Optimal's portfolio, including NETELLER, to form Paysafe Group and expand into a diversified digital payments powerhouse with enhanced geographic and product reach.[23] The transaction received shareholder approval in April and closed on August 10, more than doubling Optimal's scale while leveraging Skrill's established user base for cross-selling opportunities in online gaming, forex, and retail.[24][25]Paysafe Ownership and Recent Innovations (2016–Present)
In 2015, Optimal Payments plc acquired Skrill for approximately €1.1 billion, integrating it into its portfolio alongside NETELLER to form a larger digital payments entity; the acquiring company rebranded as Paysafe Group plc in February 2017, maintaining Skrill as a core digital wallet brand under its ownership.[24] Paysafe has since delisted from the London Stock Exchange in 2017 and gone private through a management buyout backed by private equity firms, including Blackstone, while continuing to oversee Skrill's operations without further changes in ultimate control. This structure has enabled Paysafe to leverage Skrill for expanded e-commerce and iGaming payment processing, with Skrill contributing to Paysafe's reported revenue growth, such as the group's $1.64 billion in total revenue for 2023. Under Paysafe, Skrill introduced Rapid Transfer in the US market in June 2019, partnering with Skrill USA to enable instant bank transfers for merchants and consumers, building on its European availability to support faster cross-border payments.[26] In March 2021, Skrill expanded cryptocurrency services to users in 37 US states through a partnership with Coinbase, allowing buying, selling, and holding of assets like Bitcoin and Ethereum directly within the wallet.[27] Later that year, Skrill USA enhanced its iGaming-focused features, including instant deposits and payouts, single-click deposits for returning users, and improved user experience via faster registration.[28] Skrill launched the Skrill Knect loyalty program to reward users for transactions with friends, family, and merchants, offering points redeemable for cashback or perks, as part of efforts to boost user retention in competitive digital wallet markets.[29] Prepaid card innovations included the rollout of a virtual Visa prepaid card in the US via Skrill USA and, in September 2025, a Pomelo-powered Mastercard prepaid card in Argentina to facilitate local spending and remittances.[30] However, Paysafe discontinued Skrill and NETELLER prepaid Mastercard offerings in approximately 100 countries, citing regulatory and operational efficiencies, effective around mid-2020s adjustments.[31] Additional integrations, such as with Wix e-commerce platforms in June 2021 and CMC Markets for trading deposits in September 2025, have broadened Skrill's API-driven payment gateways for global merchants.[32][33] Compliance updates included PSD2 API support for account information and payment initiation services, enhancing secure third-party access in Europe.[34]Services and Features
Core Payment and Transfer Capabilities
Skrill functions as a digital wallet that enables users to send, receive, and hold funds in over 40 currencies across more than 200 countries.[35][36] Users fund accounts primarily through bank transfers, credit or debit cards (Visa and Mastercard), rapid transfers, or prepaid methods like PaysafeCard and PaysafeCash.[37][38] These deposits support instant access for outgoing transactions, with Skrill emphasizing secure processing that avoids sharing sensitive details such as card numbers or bank account information with recipients or merchants.[3] Sending money occurs via wallet-to-wallet transfers to other Skrill users, identified by registered email or phone number, with funds typically available instantly in the recipient's account for spending at supported merchants like online stores, gaming platforms, or trading sites.[39][40] Skrill Money Transfer extends this to non-wallet destinations, allowing direct deposits to bank accounts, credit/debit cards, or mobile wallets in select countries, often at no fee for bank withdrawals under specific conditions.[41][42] International transfers support flexible payment and delivery options, though currency conversion incurs fees if the sent amount differs from the account's base currency. Receiving payments is generally free and instantaneous when matching the account's currency, with no transaction fees from Skrill for inbound wallet transfers.[43] Recipients can then withdraw to linked banks or cards, use 1-Tap for quick merchant payments, or hold balances for future transfers.[44] Skrill Rapid Transfer provides an additional real-time bank-linked option for instant payouts using online banking credentials.[45] These capabilities prioritize speed and borderless access, distinguishing Skrill from traditional banking by reducing intermediaries for cross-border flows.[46]Loyalty Programs and User Tiers
Skrill operates a tiered account system comprising three primary user levels: Skriller, True Skriller, and VIP Skriller, designed to incentivize increased usage through escalating benefits tied to account activity.[47] The base Skriller level provides standard wallet functionalities, such as online payments, money transfers, and access to the Skrill Visa Prepaid Card upon signup.[47] Progression to True Skriller unlocks zero fees on bank withdrawals and eligibility for the Knect loyalty program, which rewards points for transactions.[47] The top VIP Skriller tier targets high-volume users, offering reduced fees, elevated transaction limits, dedicated support, and exclusive promotions, with qualification generally requiring substantial quarterly transaction volumes, such as transferring at least $15,000 to Skrill merchants in the United States.[47][48] Complementing these tiers, Skrill's Knect loyalty program enables users—primarily in the United States—to earn one point per dollar spent on eligible transactions or via the Skrill Visa Prepaid Card, which can then be redeemed for various rewards.[49] Available starting at the True Skriller level, Knect integrates with higher tiers by promising enhanced rewards for VIP users, though specific multipliers remain forthcoming as of the latest updates.[47][49] Enrollment requires logging into a Skrill account and opting in via the platform's navigation.[49] VIP benefits emphasize practical advantages for frequent transactors, including a daily spend limit of $7,000 on the Skrill Visa Prepaid Card (compared to $3,000 for non-VIPs), elimination of foreign exchange fees on card usage (versus 3.99% for standard wallet transactions), a personal account manager, and round-the-clock support.[48] Exclusive perks extend to promotional events, such as sports tournaments or networking opportunities, granted quarterly based on activity thresholds.[48] Status activation occurs within five business days of meeting criteria, with periods aligned to calendar quarters (e.g., October to December for Q4).[48] These structures prioritize empirical usage metrics over subjective factors, fostering retention among active users while maintaining scalability for Skrill's payment ecosystem.[47][48]Business Model and Operations
Revenue Generation and Fee Structure
Skrill primarily generates revenue through transaction fees levied on user activities such as deposits, withdrawals, internal transfers, and currency conversions, with additional charges for premium features like prepaid cards and business payment processing.[50] These fees form the core of its business model, incentivizing higher transaction volumes via tiered VIP programs that offer reduced rates for loyal users, thereby balancing user retention with profitability. As a subsidiary of Paysafe Group, Skrill's fee income contributes to the parent company's digital wallets segment, which reported a 6% revenue increase in constant currency for the second quarter of 2024, driven partly by growth in gambling and e-commerce transactions.[51] Deposit fees vary by method and user location; for instance, card deposits often incur 1-2.5% charges, though these were waived for Australian users from January 18, 2023, to November 30, 2025, and remain at 0% for certain methods like bank transfers in select regions until late 2025.[52] Withdrawal fees are more standardized, typically €5.50 for bank transfers and up to 7.5% for credit or debit cards, with minimums applying to smaller amounts.[46] Internal transfers between Skrill accounts are free for personal use but attract fees for business recipients, often 2.9% plus a fixed €0.29 per transaction.[53] Currency conversion incurs a 3.99% foreign exchange fee on transactions involving different currencies, applied regardless of user tier unless waived for high-volume VIP accounts.[50] Prepaid Mastercard fees include a €10 annual charge, €10 for new card issuance, and the same 3.99% FX rate, with ATM withdrawals at 1.75% plus potential operator surcharges.[54] Business-oriented revenue streams include merchant processing fees for receiving payments, which align with e-commerce and iGaming sectors where Skrill maintains strong adoption.[28]| Fee Type | Typical Rate | Notes |
|---|---|---|
| Card Deposits | 1-2.5% | Varies by country; some waivers until Nov 2025 |
| Bank Withdrawals | €5.50 fixed | Minimum €20; higher for rapid processing[46] |
| Card Withdrawals | Up to 7.5% | Includes fixed minimums[46] |
| Currency Conversion | 3.99% | Applied to cross-currency transfers[50] |
| Business Receiving | 2.9% + €0.29 | Per transaction for merchants[53] |